Roughly 10.4 million single family houses in the U.S. contain 3,000 square feet or more, and represent 27 percent of the total valuation of single family owner-occupied units.
And yet an influential committee leader in the House of Representatives is set to release a draft proposal to take away mortgage interest deductions for properties with over 3000sqft next month. In other words, if your house is over 3000sqft you would not longer be able to claim the interest on your mortgage as a deduction on your Federal income tax.
All the details are not available until next month, but this may get some people up in arms as the bill could include higher gas taxes as well. Whats the reasoning for all this hype? The bill's goal is to help reduce carbon emissions and environmentalists say that these large houses consume more than their fair share of heating, electricity and building materials.
The National Association of Realtors and The National Association of Home Builders are already standing up to defend our homes and taxes. Both are very serious players in our industry and believe that a move like this could cause a severe slow down in new construction and a sharp property value decline.
Protecting Your Equity